Westlake ends bid to buy Georgia Gulf
Canadian Plastics
Construction Construction Materials Outdoor Industry/MarketsWestlake Chemical Corp. has withdrawn its US$1.2 billion bid to buy rival Georgia Gulf Corp., a maker of vinyl construction products, after Georgia Gulf officials rejected the offer as too low.
Westlake Chemical Corp. has withdrawn its US$1.2 billion bid to buy rival Georgia Gulf Corp., a maker of vinyl construction products, after Georgia Gulf officials rejected the offer as too low.
Houston, Tex.-based Westlake now plans to sell its stake in Georgia Gulf “as market conditions permit,” the company said in a statement.
Westlake’s goal had been to combine the companies to create North America’s largest maker of vinyl chloride monomer, a chemical compound used in PVC pipe and vinyl siding.
“We are disappointed in this result but we continue to work on our previously announced important strategic initiatives as well as to look for other opportunities to grow our business,” Westlake president and CEO Albert Chao said in the statement.
Georgia Gulf narrowly averted bankruptcy after acquiring Toronto-based building products maker Royal Group Technologies in 2006, at the start of the worst housing slump since the Great Depression. Georgia Gulf is now poised to post record annual sales, according to analysts’ estimates, as the U.S. housing market finally shows signs of stabilizing.
